Newfield Exploration Company (NFX) and Anadarko Petroleum Corporation (APC) have joined hands for the purchase of properties in the Maverick Basin of Southwest Texas from TXCO Resources Inc. (TXCO). The total consideration for the deal is nearly $310 million.
 
The final amount is expected to be determined at the closing of the deal during mid-February 2010. The transaction is subject to the bankruptcy court’s approval. San Antonio-based TXCO Resources, an oil and gas exploration company, had filed for bankruptcy in last May.
 
Under the terms of the agreement, Anadarko will acquire nearly 80,000 net acres in this basin for $93 million and increase its operated working interest to 75%. On the other hand, Newfield will acquire substantially all of the remaining assets (about 300,000 net acres) for a consideration of $217 million. The assets that Newfield will purchase are currently producing 1.5 Mboe/d (thousand barrels of oil equivalent per day), two-thirds of which is oil.
 
While Newfield has been active in South Texas for a long time, its acquisition of TXCO’s assets will mark an entry into the Southwest Texas and provide a compelling inventory of potential resources.
 
Newfield is keen on entering the new areas as all of its Woodford Shale acreages are held by production. In last October, it had entered the Marcellus Shale play for joint exploration activity with Hess Corporation (HES).
 
Newfield’s diversified portfolio of assets provides both flexibility and significant growth potential. We expect its entry into the Maverick Basin to create long-term value for its shareholders.
Read the full analyst report on “NFX”
Read the full analyst report on “APC”
Read the full analyst report on “HES”
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